SoFi Technologies has launched SoFi Earn, a new tokenized deposit product known as SOFIE. The offering provides a variable annual percentage yield of 4.4% for users. The company confirmed that there is no minimum balance requirement for these accounts.
Each SOFIE token is backed by $1 deposited at SoFi Bank. Customers can convert their holdings at a one-to-one ratio into SoFiUSD, the bank's dollar-pegged stablecoin. This allows users to purchase cryptocurrency within the SoFi app or transfer funds to external wallets.
SOFIE deposits are eligible for Federal Deposit Insurance Corporation coverage of up to $250 000 per depositor. However, the SoFiUSD stablecoin itself does not carry FDIC insurance. The product is currently being rolled out to SoFi Crypto members throughout November.
